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IEA downgrades further forecast for US oil output for 2023

Economy Materials 18 May 2023 18:30 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, May 18. US oil output in 2023 is expected to grow by 940,000 b/d to total 18.8 mb/d, a source at the International Energy Agency (IEA) told Trend.

Of this volume, US crude production will account for 12.5 mb/d (up by 660,000 b/d), and NGLs - for 6.2 mb/d (up by 280,000 b/d), the IEA noted.

According to the source, this forecast has been revised down by 50,000 b/d, compared to the previous assessment.

"US output rose in April for the fourth straight month, by 70,000 b/d to 18.8 mb/d. Gains from crude accounted for 40,000 b/d of the increase, led by the GoM where BP’s Argos platform started up. The 140,000 b/d facility is the company’s fifth in the region and first new platform since 2008. This is the second facility to come online this year, following Shell’s Vito project that was commissioned in February," the IEA said.

As the agency noted, these two projects are expected to add 240,000 b/d of capacity combined, helping to offset declines at mature assets.

"In February, the latest month for which official data from the Energy Information Administration (EIA) are available, US total oil supply grew by 70,000 b/d to pre-winter outage levels. Gains of 110,000 b/d in NGLs more than compensated for a 50,000 b/d crude decline. Recovering production in North Dakota partially offset losses in Texas and the Gulf of Mexico (GoM)," the agency added.

Meanwhile, the total non-OPEC+ oil output in the current year is projected to increase by 1.7 mb/d year-on-year to average 49.5 mb/d.

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